CSR PDF
CSR PDF
RESPONSIBILITY IN
BANGLADESH:
PRACTICE AND
PERPETUITY
Supported by
Published by
Researcher
Rumana Sobhan Porag
Safety and Rights Society
Published by
Safety and Rights Society
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Date of Publication
January, 2014
Copyright
Safety & Rights Society
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ISBN : 978-984-33-6453-1
ACKNOWLEDGEMENTS
We wish to express our appreciation to the following individuals and organisations, without whose
support this research would not be possible to accomplish.
Our appreciation goes to the business leaders who provided their valuable time in sharing their
views and CSR practices, and for the in-depth discussions on the current situation and ways and
means of improving CSR practice in Bangladesh. We were encouraged by the enthusiasm shown by
the private sector and their willingness to meet with us and share their experience, often at very
short notice. Without the support from these leaders, our study would not have been possible.
We would particularly like to thank Mr. Santos Datta Joint Secretary of the Bangladesh Employers
Federation, who personally communicated with their listed companies and has briefed them about
the research.
We would also like to thank the support given by factory workers who were open and willing to
share their work experience in those respective companies.
We are also grateful to Diakonia who encouraged us to initiate this research work and supported us
both financially and technically. We are thankful to Ms Khodeza Sultana Lopa, Mr. Md. Mazharul
Islam and other staff at DIAKONIA who helped us to organize the research and were always
available for discussion. Finally, we are acknowledging our gratitude to all who have supported in
different stage of the research from planning to report writing.
This research has given us deeper insight into the Bangladeshi business environment and enabled
us to gain valuable experience.
Thank you.
Rumana Sobhan
Research Officer
Safety and Rights Society
CONTENTS
Executive Summary
1
Introduction
1.1 Bangladesh Economy
1.2 Research Aims
1.3 The main objectives
1.4 Justification of the study
1.5 Methodology
1.6 Definition of Corporate Social Responsibility
2
Literature Review
3
Findings
3.1 Summary of Findings of the Research
4
Recommendations
5
Reference
6
Annexure
7.1 Annex :
7.2 Annex :
7.3 Annex :
7.4 Annex :
7.5 Annex :
6
7
7
8
8
8
9
9
14
16
16
22
23
25
25
46
47
51
54
EXECUTIVE SUMMARY
The aim of this research was to assess the effectiveness of Corporate Social Responsibility (CSR)
practices of some local and foreign companies operating in Bangladesh. The research specifically
focused on the extent to which companies practicing CSR complied with basic legal labour
standards involving their employees.
The research involved identification of companies providing CSR, obtaining information about the
details of the CSR practices adopted at these companies (though looking at their website and
interviews) and an assessment of how well these companies complied with basic labour standards.
The research found that most CSR practicing companies practiced CSR in their own specific way,
and that few companies have separate units for providing CSR or get advice from CSR experts. It
was often unclear how much money companies spend on CSR and it also found that many of these
companies, whilst providing CSR, did not comply with the law in providing basic labour standards
to their employees.
INTRODUCTION
The purpose of business is to make money. However, the profit motive is sometimes viewed as less
than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as
selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a
concern for financial reward and is arguably necessary if society is to be maximally productive and
efficiently allocate its resources (Geoffrey P. 2002).
Profit rewards hard work and innovation, incentives that most people need because otherwise it
would be irrational to save and invest rather than consume. Consequently business organizations
cannot operate successfully without the cooperation of the society in which it is located.
Businesses should assume social responsibilities because they are among the few private entities
that have the resources to do so. The corporate world has some of the brightest minds in the world
and it possesses tremendous financial resources (Ahamed 2010). Thus, businesses should utilize
some of their human and financial capital in order to "make the world a better place."
Mohammad Sanaullah, Director, Corporate Affairs & Company Secretary of Singer Bangladesh said,
'Corporate Social Responsibility is one of the new dimensions in corporate management once if
the focus was on financial Management. Most of that time people were saying that maximization
of profit is the main objective of the company but in modern times we do not speak like that. We
feel that the company's corporate management's main objective is to achieve the corporate goal
and incentives as well. Whenever you have to achieve the corporate goal you think about the
stakeholder's interest and at the same time the corporate social responsibility. Corporate Social
Responsibility is for progressive companies and definitely they will look after the under privileged
people, the distressed people and those who don't have the capacity to survive in this society'.
CSR as a concept is being gradually interwoven into the psyche of local business, however, the
process is slow and only in its infancy. The primary and most important benefit from implementing
mechanisms such as a code of corporate governance is likely to be felt at the national level with an
improved global perception of Bangladeshi business procedures including improved ethical
business practices. In turn, this could lead to a process of revitalization of the Bangladeshi economy.
Many of the companies carrying out CSR activities are members of textile associations such as the
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh
Knitwear Manufacturers and Exporters Association (BKMEA). Though the government has no
explicit policy on CSR, Bangladesh Bank has made it mandatory for Banks to practice CSR, and some
of the ministries, such as the Ministry of Commerce and the Ministry of Information, are
encouraging private industry to engage in CSR activities, which are also tax deductible.
Companies also enjoy the support of two private institutions with CSR expertise: the Bangladesh
Enterprise Institute (BEI) and the CSR Center Bangladesh. The BEI facilitates partnerships and
programs in the private sector that are working to achieve Bangladesh's development goals, and it
also organizes the local Global Compact network. According to the Bangladesh Enterprise Institute
(2004) there are numerous potential benefits and rewards for Bangladesh by improving corporate
governance, including corporate social responsibility, practices. Moreover companies are not
adequately implementing social and environmental standards and provides tools to help them
improve their performance. It also serves as a network for the exchange of views and experiences.
Both institutions provide a good contact point for companies seeking to become involved in CSR
activities in Bangladesh (CSR WeltWeit 2012).
1.5 Methodology
The research on Corporate Social Responsibility was conducted over a seven months period
between June and December 2012. The methodology used to conduct the study was a
combination of qualitative and quantitative analysis based on face-to-face interviews using a semi
structured questionnaire comprising 21 questions. This questionnaire included sections regarding
company data, and dealt with a broad range of sustainability aspects such as charitable giving, CSR
and human resource Management, drivers for CSR .
The participating companies were chosen from the group of larger national and multinational
companies. Fifty companies from different sectors listed in the Dhaka Stock Exchange, was chosen
as the sample for this study, to find out the extent of the use of corporate social responsibility
activities by companies in Bangladesh. We randomly selected the companies from 12 sectors in
business. Banks-5, Food & Allied-4, Engineering- 5, Pharmaceuticals & Chemicals-5, Services & Real
Estate- 4, Tannery Industries- 5, Textile- 5, Telecommunication- 2, Fuel & Power- 5, Insurance- 5, and
Fin Institutions- 5. An inquiry letter was sent to all the fifty companies to findout whether they have
any CSR activities or not to select our fixed sample of twenty companies. Our targeted respondents
were Managers of Corporate Communication Division for each company.
After we had established whom to contact, we wrote to them in the last week of July 2012 to
obtain their assistance for our research. We mentioned three points; did they undertake any
corporate social responsibility; why did they undertake those activities; and how the company and
beneficiary were benefited from these activities. We asked them to respond by a particular date (14
August 2012). The companies which did not respond were contacted a number of subsequent
times.
Apart from the semi-structured interviews we had also obtained information from the annual
reports and the websites.
Very few companies had responded to our call and we wrote to BKMEA, BJPA, BTMA, BEF, BFLPEA,
BFWE, BACI, BAPI, REHAB, BGMEA on 27 August 2012, to see if they could provide the name and
address of at least 10 of their affiliated member organizations that have CSR related activities in
Bangladesh. Only BEF (Bangladesh Employers Federation) responded to our letter and the joint
secretary had personally communicated with their member companies and briefed them about
the research. He played a vital role in selecting the companies to be interviewed in our research.
Finally, we were able to select fifteen companies and obtained the information regarding the CSR
activities of those companies.
In the mean time, we also interviewed the worker's of that targeted companies. We wanted to
discover whether or not the companies, whiles providing CSR, were also complying with sthe law
on basic workplace standards.
There is no universally accepted definition of CSR. There are different type of views on what CSR is
and what it is not. Having become a buzzword in boardrooms and the media, CSR is more often
misunderstood as giving back to the society and considered to be synonymous with philanthropy.
The dominant school of thought is that CSR is no philanthropic activity and a business must earn
for what it invests. The company does it for its own long term good. Drawing a parallel with
Publicity and Public Relations it is argued that philanthropy could earn publicity but CSR, like Public
Relations is a long term investment with assured returns. It advocates that CSR constitutes a series
of initiatives taken by a company in its enlightened self-interest.
It would be motivating to derive a meaning of the concept with the dissection of each of the
words. CSR is not a difficult concept and can be explained as:
Corporate Philanthropy
Corporate Support
Sponsorships
Corporate Partnerships
Responding in Emergency
10
CSR also refers to business decision making linked to ethical values, compliance with legal
requirements and respect for people, communities and the environment. It is a comprehensive set
of policies, practices and programmes that are integrated throughout business operations and
decision-making processes that are supported and rewarded by the top management
The World Business Council for Sustainable Development in its publication Making Good Business
Sense by Lord Holme and Richard Watts, used the following definition for CSR. 'Corporate Social
Responsibility is the continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce and their families as
well as of the local community and society at large' (http://www.mallenbaker.net/csr/definition.
php). For instance, CSR is a voluntary decision taken by corporations, it is integrated into the
strategic model of business in the form a self regulating mechanism that lets them monitor and
ensure their adherence to ethical standards, law and international norms.
Fundamentally, CSR is governed by the Triple Bottom Line (TBL) i.e. People, Planet, and Profit. By
incorporating CSR policies, businesses embrace their responsibility towards the environment,
consumers, employees, stakeholders, suppliers, communities and the other members of the
community, and contribute to their social obligations by promoting and encouraging community
development and eliminating the practices that harm it (admin 2011).
However, the scope of CSR in corporate board rooms to be management ranks have pervaded and
continue to gain momentum (Hill, 2006 cited Belal 2008). It is also recognized as Corporate
Responsibility, Corporate Citizenship, Responsible Business, or Social Action Program, Sustainable
Responsible Business (SRB), Corporate Social Performance or Corporate Sustainability and
Responsibility. It is gratifying more and more vital initiative of businesses both nationally and
internationally. Proponents argue that corporations make more long term profits by operating with
a perspective.
As per Wikipedia, "Ideally, CSR policy would function as a built-in, self-regulating mechanism
whereby business would monitor and ensure its support to law, ethical standards, and international
norms. Consequently, business would embrace responsibility for the impact of its activities on the
environment, consumers, employees, communities, stakeholders and all other members of the
public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest
by encouraging community growth and development, and voluntarily eliminating practices that
harm the public sphere, regardless of legality. "
It is to be remembered that a company's business model should be socially responsible and
environmentally sustainable. By socially responsible, it means that the company's activities should
benefit the society and by environmentally sustainable it means that the activities of the company
should not harm the environment (Wikipedia, 2012). There are more responsibilities like economic,
legal, and Ethical responsibility. The economic responsibilities lay the foundation of all social
obligations and are deeply rooted in the classical doctrine of "business of business is business" as
endorsed by noble laureate Milton Friedman (1970). Legal responsibilities are mandatory for
corporations as these are prescribed by law. Therefore, corporations have no choice but to comply
with these basic "ground rules" (Carrol, 1979, p. 50). Ethical responsibilities of corporations are
additional responsibilities going beyond legal compliance and profit making and include those
that firms believe are the right things to do. Ethical responsibility stems from humanistic, religious
and moral orientation of corporations (Lantos, 2001). The discretionary responsibilities refer to the
voluntary nature of obligations rooted in the altruistic principles that are neither required by law
11
nor are expected by the community. The drive for such responsibilities arises from the reciprocal
obligation of giving back to community in exchange of profit and power that businesses receive
from society (Ali Quazi et al http://www.kantakji.com/fiqh/Files/Companies/z120.pdf )
Though various definitions have been attached to the term, it can be stated that CSR, in its
broadest sense, delineates the relationship between business and society and the role of business
in sustainable development. The fundamental idea behind CSR is that a corporation or company
incurs responsibilities to society beyond maximization of profit and beyond meeting the minimal
requirement of the law. CSR also has numerous facets. Corporations are overwhelmed by many
issues in the name of CSR: stakeholder demands, environmental issues, issues of sustainability,
diversity, labour conditions, ethical investment, and philanthropy among others. Clearly, there is no
one agreed concept. An important distinction should be made, however, between internal and
external CSR practices.
Internal CSR refers to programmes that focus on the core business and on the workforce, such as:
Human Resources (HR) practices
Health, Safety and Environmental ( HSE) practices
Codes of Conduct
Fulfilling and Motivating Work Environment
Employee Development Programmes
Local Content Policies
Assessing and Increasing the Social and Environmental Impact of a Company
Environmental Management Systems ( EMS)
Product Responsibility
External CSR refers to social and environmental programmes directed towards the external
environment, including:
Community development programmes
Sponsorships corporate SOCIAL responsibility
Donations
Contributions to Civil Society Organizations ( CCSO)
Educational programmes at various levels
Supply -chain management
Cluster development
Involvement in the development debate
External CSR should be also distinguished from philanthropy and Public Relations (pr)/Marketing.
Unlike philanthropy, CSR is "an investment from which companies should expect tangible returns
and positive impact on their net profits". In contrast, philanthropy relates to "donations or
charitable giving from which companies do not necessarily expect any direct positive impacts on
their business activities".
On the other hand, CSR differs from pr/Marketing, since it focuses on those areas where there is an
overlapping of social and economic benefits, while pr/Marketing does not focus on any specific
social benefits, but only on those activities that can provide a monetary return for the company.
12
In today's world, CSR can be defined as regards to all aspects of business behavior so that the
impacts of these activities are incorporated in every corporate agenda (Orgrizek, 2001; Coldwell,
2001cited in Belal 2008 ). So, with the literature's definition of CSR, it can be concluded that CSR is
the continuing commitment taken by business organizations to strengthen their ethical concepts
and social involvement in society, contribute to economic development, sponsor charitable
programs, and improve the quality of the workforce and also the increment of services provided.
In the context of this research, we have looked at CSR as the benefits that companies provide to
workers and to the local community affected by business , over and above what they are required
to do so by law,
Critics: While critics argue that CSR distracts from the economic role of businesses. Others argue
CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog
over powerful multinational corporations.
Despite the fact that CSR as a perspective is growing, there has always been critics ( J Classon 2006). One of the most influential critics is Nobel Prize winner in economy Milton Friedman, who
claims that companies' sole purpose is to maximize profit for their stockholders. Furthermore, he
claims that CSR is a waste of the stockholders' money (Friedman, 1962). He had argued that the
primary responsibility of business is to make a profit for its owners, albeit while complying with the
law. According to this view, the self-interested actions of millions of participants in free markets will,
from a utilitarian perspective, lead to positive outcomes for society. If the operation of the free
market cannot solve a social problem, it becomes the responsibility of government, not business, to
address the issue.
The "competitive" argument recognizes the fact that addressing social issues comes at a cost to
business. To the extent that businesses internalize the costs of socially responsible actions, they
hurt their competitive position relative to other businesses. This argument is particularly relevant in
a globally competitive environment if businesses in one country expend assets to address social
issues, but those in another country do not. According to Carroll and Buchholtz, since CSR is
increasingly becoming a global concern, the differences in societal expectations around the world
can be expected to lessen in the coming years.
Finally, some argue that those in business are ill-equipped to address social problems. This
"capability" argument suggests that business executives and managers are typically well trained in
the ways of finance, marketing, and operations management, but not well versed in dealing with
complex societal problems. Thus, they do not have the knowledge or skills needed to deal with
social issues. This view suggests that corporate involvement in social issues may actually make the
situation worse. Part of the capability argument also suggests that corporations can best serve
societal interests by sticking to what they do best, which is providing quality goods and services
and selling them at an affordable price to people who desire them.
13
2 LITERATURE REVIEW
There is in Bangladesh a long history of philanthropic activities from time immemorial. These
philanthropic activities included donations to different charitable organizations, poor people and
religious institutions ( Miyan 2006). The CSR World Wide portal conclude that, in Bangladesh Civil
society, businesspeople and politicians view CSR in terms of philanthropy, particularly in the
schools and the healthcare sector. This focus is also rooted in the country's Islamic tradition of
calling upon those with more resources to help the disadvantaged. Accordingly, companies are
expected, most of all, to engage in charitable works, for example by providing donations or incompany training programs (The CSR World Wide portal, 2012).
Till now, most of the businesses in Bangladesh are family owned and first generation businesses.
They are involved in community development work in the form of charity without having any
definite policy regarding the expenses or any concrete motive regarding financial gains in many
instances. Moreover, most of the SMEs fall under the informal sector having low management
structure and resources to address the social and environmental issues.
The discussions on CSR practices in Bangladesh in its modern global terms, is relatively new. In
general, it is true that in Bangladesh, the status of labor rights practices, environmental
management and transparency in corporate governance is not satisfactory, largely due to poor
enforcement of existing laws and inadequate pressure from civil society and interest groups like
Consumer Forums. Globally, as CSR practices are gradually being integrated into international
business practices and hence is becoming one of the determining factors for market accesses, it is
becoming equally instrumental for local acceptability. A focus on CSR in Bangladesh would be
useful, not only for improving corporate governance, labor rights, work place safety, fair treatment
of workers, community development and environment management, but also for industrialization
and ensuring global market access. By now, many CSR dimensions are practiced in Bangladesh
(Miyan 2006, Mondol,2009)
Though CSR is a relatively new concept in Bangladeshi corporate culture, awareness of corporate
social reporting has rapidly increased. All companies need to consider their CSR for two basic
reasons. Firstly, there is intensifying pressure from stakeholders to do so (Belal, 2001 cited Azim
2011). Any company that does not develop and promote its CSR policy to all stakeholders will face
increasing threats to its reputation. Secondly, because it makes sound business sense, CSR
enhances the reputation of an organization, brings in new business and improves stakeholder
return (Kabir,2003 cited Azim 2011 ).
The government of Bangladesh has not imposed or proposed requirements for disclosure of social
and environmental performance. The Bangladesh Companies Act 1994 sets the general framework
for corporate financial reporting. However, no provisions regarding CSR exist in the Companies Act
1994 (GoB, 1994). Until recently, there has not been a separate Bangladesh Accounting Standard
(BAS) regarding social and environmental reporting (IASCF, 2003). In Bangladesh, CSR is still
voluntary with the exception of disclosure of expenditures on energy usage required under the
Companies Act of 1994 and the Securities and Exchange Rules of 1987, which require the total
amount spent on energy to be shown as a separate expenditure in the notes to the financial
statements (Belal, 2001). Since corporate social reporting disclosure is voluntary in Bangladesh.
14
15
FINDINGS
Most of the respondents stated that they completely understand the concept of
corporate social responsibility though they didn't follow any CSR guide line, policy or
advice from any CSR consultation center of Bangladesh. Most of them simply do some
philanthropic activity and declared that as CSR activity. Only Grameenphone and IDLC
Finance consult with CSR Center and Nestle Bangladesh and BRAC Bank follow their
parent organization's guide line for their CSR activities.
SL
Company Name
1
2
3
4
Apex Tannery
Apex Adelchi Footwear Limited
Beximco Pharmaceuticals
BRAC Bank
IDLC Finance
Summit Alliance Port Limited
Singer Bangladesh
Titas Gas Dist. Co. Ltd
Grameenphone
Nestle Bangladesh
Babylon Group
Gemini Sea Foods Ltd.
6
7
8
9
10
11
12
16
2.
Most interviewed companies were hesitant to report their yearly CSR Budget in their
annual report. Only Singer Bangladesh, Summit Power, Apex Tannery and Titas Gas
presented the amount of financial aid for CSR activities to their Annual Report.
SL Company Name
Paid Up Capital:
BDT
Yearly Turnover:
BDT
Expenditure
for CSR: BDT
Apex Tannery
152,400,000
(Annual Report
2012)
3,067,208,000
(Annual Report
2012)
Mentioned in
Annual Report
550,000
5,00,000,000
(Annual Report
2011)
95,498,560,000
Not mentioned in
Annual Report
Not mentioned in
Annual Report.
(Annual Report
2011)
7,892,400,000
(December 2011)
Not mentioned in
Annual Report.
Not mentioned in
Annual Report.
Brac Bank
3,210,000,000
(Annual Report
2011).
194,540,000,000
(Annual Report
2011)
Not mentioned in
Annual Report.
Not mentioned in
Annual Report.
IDLC Finance
1,237,500,000
(June 2012,)
2,160,000,000
(June 2012,)
Not mentioned in
Annual Report.
Not mentioned in
Annual Report.
394,360,000,000
(Annual Report:
2011)
4757.210000
(Annual Report:
2011)
Mentioned in
Annual Report.
12,411,5000
(Annual Report:
2011)
Singer Bangladesh
392,680,000
(2011,Annual
Report)
5,461,234,639
(Annual Report
2011)
Mentioned in
Annual Report.
1,530,000 (Annual
report, 2011)
942.120000000
(2010-11)
68,551,233,852
(2010-11)
Mentioned in 31st
Annual General
Meeting, 30
December 2012
1,365,000
Grameenphone Ltd.
13,503,000,000
(Annual Report:
2011)
89,060,000,000
(Annual Report:
2011)
Not mentioned in
Annual Report.
Not mentioned in
Annual Report.
10 Nestle Bangladesh
No Annual Report
No Annual Report
Confidential
Confidential
11 Babylon Group
29,740,000
131,000,000
Not mentioned
Not mentioned
20,000,000
1,07,78,83,336
Not mentioned in
Annual Report.
Not mentioned in
Annual Report.
17
3.
SL No.
Company
1
2
Apex Tannery
Apex Adelchi Foot
wear Limited
Beximco
Pharmaceuticals
Brac Bank
IDLC Finance
Summit Alliance Port
Limited
Singer Bangladesh
Titas Gas Dist. Co. Ltd
Grameenphone
Nestle Bangladesh
Babylon Group
Gemini Sea Food Ltd.
3
4
5
6
7
8
9
10
11
12
4.
Child Care
name
3
4
5
6
7
8
9
10
11
12
18
14
Insurance for
Worker
Medical facilities
for Worker (hospital
in factory or Doctor)
yes
no
no
yes
yes
yes
yes
Yes
no
yes
no
(canteen)
yes
no
yes
yes
no
yes
Yes
yes
no
no
no
(canteen)
no
no
yes
No
yes
No
yes
no
(canteen)
(canteen)
yes
no
yes
yes
yes
no
Yes
Yes
Yes
yes
Whilst, the CSR interventions of international companies are based on the direction and
guidance of their parent companies (e.g., Nestle Bangladesh, Singer Bangladesh), other
company's CSR programmes and projects are funded by the decisions on a board level or
ad-hoc basis. The research revealed that seven companies out of twelve prepared their
CSR plan following the decisions taken by the board..
SL
1
2
Apex Tannery
Apex Adelchi Footwear
Limited
Beximco Pharmaceuticals
Brac Bank
IDLC Finance
Summit Alliance
Port Limited
Singer Bangladesh
Titas Gas Dist. Co. Ltd
Grameen Phone
Nestle Bangladesh Ltd.
Babylon Group
Gemini Sea Food Ltd.
5.
CSR is also used by companies to provide benefits to their employees. Some of the
companies engage in in-house charitable works, such as by providing donations or inhouse training programs. Last year Apex Aadelchi (AAFL) donates money for training and
skill development activities (annual report 2012) as well as regularly contributing to
support education in schools, madrasas (religious school), knowledge centers, college and
universities of the country. They have also set up a full-fledged medical centre and a daycare centre for their employees. Similarly SINGER set up a Sewing Academy which extends
its services to the underprivileged women of the society. On an average each year, the
Sewing Instructors provide training to approximately 2000 students who can also get a
job in Singer. Babylon Group also arranged training and some sort of educational
programme for their employees inviting renowned poets and writers to their factory to
encourage their workers to be literate.
6.
There were few companies who have separate units or department for CSR activities. The
research found that Grameenphone, IDLC Finance, BRAC Bank and Nestle Bangladesh Ltd
have a separate unit for CSR activities.
SL Company Name
1
2
3
4
5
6
7
8
9
10
11
12
Apex Tannery
Apex Adelchi Footwear Limited
Beximco Pharmaceuticals
BRAC Bank
IDLC Finance
Summit Alliance Port Limited
Singer Bangladesh
Titas Gas Dist. Co. Ltd.
Grameenphone
Nestle Bangladesh Ltd.
Babylon Group
Gemini Sea Food Ltd.
7.
Trade unions: The CSR responsible person of every interviewed company stated that their
employees were so satisfied that they did not feel a need to form a trade union. Though
Beximco Group employees alone of the companies have a strong labour union and they
are very active.
19
8.
The primary target of CSR efforts for most businesses is underprivileged children of
the society, mainly in the form of financial assistance towards medical treatment.
IDLC sponsored 10 specially-challenged children of SEID Trust (SEID Trust- a nongovernmental voluntary development organization working for social inclusion and
promoting rights of underprivileged children with disabilities including intellectual and
multiple disabilities as well as autism since 2003) and also sponsored Shishu Bikash
Chhaya (a residential centre providing better education and healthcare facilities to
underprivileged children) providing them the benefits of better education and healthcare
facilities. IDLC has been contributing to SEID Trust for more than 6 years. Summit Power
also sponsored an amount of Tk. 13, 43,750/- to SEID Trust for supporting this deprived
part of the community. Similarly Apex Tannery Ltd donated 0.5 million to Jalalabad
Association for scholarships to the meritorious students. BRAC Bank donated Prothom Alo
Adamya Medhabi, Biochemistry Olympiad. Beximco Pharma offered financial assistance to
the children of their employees. In the year 2011, Singer also arranged Employment to the
Underprivileged children of UCEP (Underprivileged Children's Education Program- is
providing technical training on different trades. On completion of this training the
trainees are absorbed in different organizations).
9.
10. Companies are interested to donate in Art, Cultural and Sports sector: For instance
SINGER Bangladesh Limited in association with media partner Channel i, has introduced
SINGER-CHANNEL I BRAVERY AWARD: KINGBODONTI, first of its kind in the country, from
2011. The objective of this award is to recognize and honor brave souls of the country
who are making a difference through their selfless acts. Similarly, In 2011 Beximco,
sponsored and organized the grand cultural event, at the National Museum, marking the
150th birth anniversary of Rabindranath Tagore. Summit believes in the eagerness,
strength and compassion amongst the youth and aims to boost up the spirit within the
Bangladeshi youth and so supports and sponsor North Alpine Club Bangladesh - NACB.
11. Some companies are environmentally conscious and take initiative, such as IDLC
finance has launched an environmental awareness campaign in different school, in
partnership with LEADS, targeting primary school children. On environmental issues,
Summit Power gives high priority to protecting the environment and their humble efforts
in this regard included extensive number of sapling plantation in the Company's power
plants and neighboring places.1
1Beximco Pharma states that it is always aware of environmental compliance and adopts policies to preserve the environment by
practically minimizing emission and waste, thereby reducing carbon footprint. But the authorities of Hajji Kasimuddin Public
School at Tongi's Ouchpara, adjacent to a factory of drug maker Beximco Pharmaceuticals, have filed a general diary with Tongi
Model Police as several students fell sick on 9 September 2012, Sunday after inhaling gas emitted from the factory
(http://news.priyo.com/business/2012/09/09/schoolers-fall-ill-b-59396.html). Business organizations cannot operate successfully
without the cooperation of the society in which it is located.
20
12. The links between NGOs and business sector are limited. Few of the interviewed
companies had links with NGO's for their CSR activities. Beximco does works together with
non-profit organizations who work to improve people's lives through research,
information, and advocacy. Beximco joined Mobile Alliance for Maternal Action (MAMA) in
Bangladesh. MAMA is a country-owned, country-led initiative managed by an alliance of
stakeholders. Summit Power understands its responsibility to reduce the gender
inequality and continues to support related bodies through different means, with
Karmojibi Nari (KN) one such organization. Summit Power Limited donated to the Acid
Survivor's Foundation that supports survivors of brutal attacks. Similarly Apex Adelchi
Footwear Ltd. (AAFL) has played an instrumental role in establishing the Center of
Excellence for Leather Skill Bangladesh Limited (COEL) to give one-stop skill solutions for
leather sector. AAFL is one of the major stakeholder of COEL, a not for profit institution,
which has coordinated its effort with the Department for international Development's
(DFID) Shiree challenge Fund and Gana Unnayan Kendra to identify groups most affected
by climate change. Similiarly, Singer Bangladesh had taken up an ongoing initiative in
conjunction with Fareea Lara Foundation. Grameenphone jointly with USAID launched
Mobile Alliance for Maternal action (M4H) initiative that provides critical life saving
information to new and pregnant mother and their guardians through SMS and IVR.
Grameenphone also collaborates with Jaago Foundation launched Online Class room and
support for Women Support and investigation Division and national Legal Aid Services
Organization (NLASO).
13. None of the interviewed company said they faced any type of impediment or
hurdles in implementing CSR activities.
SL
Company Name
1
2
3
4
5
6
7
8
9
10
11
12
Apex Tannery
Apex Adelchi Footwear Limited
Beximco Pharmaceuticals
Brac Bank
IDLC Finance
Summit Alliance Port Limited
Singer Bangladesh
Titas Gas Dist. Co. Ltd.
Grameenphone
Nestle Bangladesh Ltd.
Babylon Group
Gemini Sea Food Ltd.
21
RECOMMENDATIONS
Create a CSR policy : It would be helpful if the government created a CSR policy setting out
expections that the government has of companies to work on CSR issues, and providing guidance
on the kinds of activities possible.
Awareness building Programme : It would be useful if there was a greater awareness amongst
businesses about corporate social responsibility and the kinds of CSR activities they could
undertake.
Worker's Rights ensured : Those undertaking CSR must ensure that they are complying with the
law in relation to labour rights and any legal obligations they may have in protecting the local
community and environment.
Capacity building : Companies should consider seeking assistance from outside bodies in
considering what CSR activities they should or could undertake.
Research and information sharing on CSR : Research into CSR achievements amongst
Bangladesh companies
Corporate CSR strategy : Companies should be encouraged to integrate CSR into their
core values and articulate a specific CSR strategy. They should not wait for government
pressure, they should boldly practice CSR activity for their sustainable business.
Public disclosure: Business should aim to disclose their CSR engagement to the public. Transparent
reporting will improve the companies' credibility; it will open up opportunities for coordination of
CSR initiatives across businesses, and facilitate better research and inter-stakeholder dialogue
resulting in general improvement of CSR.
CSR practicing Companies should disclose information about the exact percentage of their profits
goes into CSR activities, in their Annual Report. This voluntary disclosure has a positive impact on
how an organization performs and may legitimize the organization's behavior by influencing other
stakeholders. It also signifies the recognition of that organization's accountability to society
22
Higher education institutions involved in business administration should ensure that they
have a module in the courses dealing with CSR activities.
REFERENCE
1.
Ahmed, Ishraq (June 6 2012 ),` The Bangladesh economy: Prospects for the future" publish in The Financial
Express. http://www.thefinancialexpress-bd.com/more.php? news_id=131987&date=2012-06-06.
2.
Bangladesh Enterprises Institute. Corporate Social Responsibility, Bangladesh Perspectives: Findings from
Literature Review and Focus Group Discussions. http://www.bei-bd.org/images/publication/whc4f4baada
9e923.pdf
3.
Bangladesh: Maps, History, Geography, Government, Culture, Facts, Guide & Travel/Holidays/Cities
Infoplease.comhttp://www.infoplease.com/ipa/A0107317.html#ixzz2DxTq2gIW
4.
Belal, A.T. 2001. A study of corporate social disclosures in Bangladesh. Management Auditing Journal 16 (5),
274-289.
5.
Blowfield, M., Frynas, J.G. 2005. Setting new agenda: critical perspective on corporate social responsibility in the
developing world. International Affairs 81 (3), 499-513.
6.
7.
8.
Edward Probir Mondol(20 Jul 2009),"Why Corporate Social Responsibility? -The Context of Bangladesh"
Published by: Corporate Social Responsibility Bangladesh Foundation
9.
Friedman, M. (1970). The social responsibility of business is to increase its profits. New York. Times Magazine,
September 13: 32-33, 122-126. http://www.alba.edu.gr/uploads/speech.pdf
10. Hosen Md. Zakir et a l (Corporate Social Responsibility (CSR) of MNCs in Bangladesh: A case study on Grameen
Phone Ltd. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1639570
11. Hossain, MA, Islam, KS and Andrew, J, (October 2006). Corporate Social and Environmental Disclosure in
Developing Countries: evidence from Bangladesh (Asian Pacific Conference on International Accounting
Issues, Hawaii, http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1194&context=commpapers
12. Imam, S. 2000. Corporate social performance reporting in Bangladesh. Managerial Auditing Journal 15 (3), 133141. http://mams.rmit.edu.au/umuxjsvwvs2vz.pdf
13. Jamali, D., Mishak, R. 20007. Corporate social responsibility (CSR): Theory and practice in a developing country
context. Journal of Business Ethics 72, 362. http://www.kantakji.com/fiqh/Files/Companies/z120.pdf
14. Miyan M Alimullah (2006), "Dynamics of Corporate Social Responsibility - Bangladesh Context" Journal of AIUB
Bangladesh, August, Vol.3, No. 1, Pp. 13-32,com.bd/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=
0CCoQFjAA&url=https%3A%2F%2F2.zoppoz.workers.dev%3A443%2Fhttp%2Fwww.researchsea.com%2Fhtml%2Fdownload.php%2Fid%2
15. Mohammed Belal Uddin et al(2008), Three Dimensional Aspects of Corporate Social Responsibility' on Journal
of Business and Economics, Vol. 3, No. 1, January 2008 , https://globaljournals.org/GJMBR_Volume12/13.
Corporate-Social-Responsibility-Disclosure-in-Bangladesh.pdf
16.
University of Houston ,
17. Amin, khairul. (Sun, 09/09/2012-11:18pm) "Schoolers fall ill from Beximco gas" cited in, http://news.priyo.com
/business/2012/09/09/schoolers-fall-ill-b-59396.
23
18. THE DAILY STAR Monday, July 16, 2012 Business Many still see CSR as philanthropy: study , Star Business
Report. http://www.thedailystar.net/newDesign/news-details.php?nid=242259
19.
Uddin, Mohammed Belal et al (January 2008 209) Three Dimensional Aspects of Corporate Social
Responsibility published by Daffodil International University Journal of Business and Economics, Vol. 3, No. 1.
20.
21. (http://www.bioinfo.in/contents.php?id=195).
22.
(http://find.galegroup.com/grnr/infomark.do?&source=gale&idigest=85955ee3bb5b0f734456742dd7bf38
59&prodId=GRNR&userGroupName=coloboulder&tabID=T001&docId=CX3273100059&type=retrieve&conten
tSet=EBKS&version=1.0)
24
ANNEXURE
25
Medical care facilities inside the Factory& Free Immunization for children of employees
AAFL is a regular contributor to support education in schools and madrasas, knowledge centers,
college and universities of the country.
Training & Skills Development Activities : Started training using the factory premises of Apex
Adelchi Footwear Limited with the help of Poverty Reduction by Increasing the Competitiveness of
Enterprises (PRICE), which is funded by the United States Agency for International Development
(USAID) to train 400 individuals every three months time, resulting in a total of 2400 operators
trained in one and half years to create employment opportunities in footwear and leather goods
sectors.
Last year Company's turnover and budget for CSR activity : Company's registered/paid-up
capital 5,000,000,000 BDT (Annual Report). The company's approximate yearly turnover is BDT:
95,498,560,000(Annual Report 2011).
Major Contribution in CSR : Environment, Training & Skills Development Activities.
26
Apex Tannery has provided financial support to the Imam of the factory mosque for his treatment
CSR activities:
Director of Apex Tannery Ltd Md. Hedayetullah handing over a cheque worth 0.5 million
under corporate social responsibility to President of Jalalabad Association, Dhaka Dr AK
Abdul Mobin for scholarships to the meritorious students.
The Company had provided a cheque worth TK. 40.000 TO THE SON OF Md. Afseruddin
Supervisor of the Company for his education.
The company had provided pure drinking warer to the slum dwellers at Rayerbazar
Boddhovumi.
The Company had provided pure drinking water to the slum dwellers at Rayerbazar
Boddhovumi.
The Company had provided TK. 10,000 to Md. Siddiqur Rahman Imam of the factory
mosque of the company for his treatment.
27
Last year Company's turnover and budget for CSR activity : last Year Company's yearly paid up
capital was 152,400,000 BDT and turnover 3,067,208,000 BDT (Annual Report 30 September, 2012),
and budget for CSR activity was BDT.550,000. This amount was allocated by the higher authority.
There is no specific percent from profit for CSR activity.
Major Contribution in CSR : In-house activity like staffs treatment and scholarships for employees
children etc.
Labour act comply : They didn't truly follow the labour act to their factory because their workers
are exposed to dangerous chemicals and are in danger of accidents due to tannery machinery and
have to work more than 8 hours.
IDLC supports SEID Trust for the development of underprivileged and disabled children
CSR activities : IDLC has conducted carbon footprint analysis of three of its branches in May 2012.
IDLC celebrated World Environment Day on June 5, 2012, by distributing pot plants among their
clients with a message "Let's make a greener planet!" The objective was to give them this simple
message that together, even small parts done by us can play a major role in building a better
environment.
28
4. BRAC Bank
Company Profile : BRAC Bank is a mission driven bank. It was founded by Sir Fazle Hasan Abed
with a mission of taking banking services to unbanked 'missing middle'. Serving the people and
planet is embedded in DNA of the bank. Its CSR activities are aligned with the mission and vision of
the bank.
BRAC Bank Limited ,Registered address detail : 1 Gulshan Avenue, Gulshan 1, Dhaka 1212 . Its
total staff 6021. Regular 4213- 582 female, Contractual 1808 -283 female. It's registered/paid-up
capital BDT. 3,210,000,000 (as of Annual Report 2011) and its yearly turnover 194,540,000,000 (as of
Annual Report 2011)
29
CSR definition : Mr.Zeeshan Kingshuk Huq designated as Head of Communication & Service
Quality said ,` BRAC Bank follows 3P Philosophy - People, Planet & Profit. The Bank has embedded
the philosophy into the DNA of its business. To us, CSR is not limited to single-time donations or
supporting mid-term sustenance of social ventures, but more of how we do our business. The very
business of SME Financing has worked towards ensuring inclusivity in terms of banking. However,
apart from the regular business, we do carry various other donor activities'.
CSR activities : BRAC Bank focuses on six key areas for corporate social responsibilities. They are:
Environment, Education, Health, Young leadership, Culture & heritage and Community
development. Key CSR activities:
Education - BRAC Bank-Prothom Alo Adamya Medhabi, Biochemistry Olympiad
Health - Autism awareness, Kidney Hospital
Social Welfare - Rehabilitation to acid victim women, Taramon Bibi, Marathon for humanity
Environment - biogas plant, solarizing SME Unit Offices, seed crushing projects etc.
Art & culture - Ekushey Book Fair, support to Liberation War Museum etc .
Last year Company's turnover and budget for CSR activity : BRAC Bank's yearly turnover
194540000000(Annual Report 2011). In 2011 BRAC Bank undertaken an estimate of the annual cost
of all their corporate social responsibility activities, that is 3 crore (Approx.)
CSR Policy is the guided principles for BRAC Bank to carry out CSR programs. More than 45% of the
activities involving 23% of the budget in 2011 were planned on annual basis keeping the principles
in mind.
Major Contribution in CSR : Sponsoring in Education, Health, Social Welfare, Environment, Art &
culture.
30
5. Beximco Pharma
Company Profile: Beximco pharmaceuticals Ltd. Belongs to Beximco Group, The largest private
sector business conglomerate in Bangladesh incorporated in the late 70s, The Company's key
strategies always aim to provide a strong return for shareholders, while creating social and
economic value in the communities where it operates. They remain committed to being a good
corporate citizen.
Beximco pharma's registered address is 17 Dhanmondi R/A, Road No. 7 Dhaka 1205. Its total
employs a workforce of roughly 2700 (As of 2011,). And the company's registered/paid-up BDT
2,517,678,100 (December 2011). The company's approximate yearly turnover BDT 7,892,400,000
BDT (December 2011).
CSR definition : Fairuze Chowdhury, Executive, Business Development of Beximco Pharma defines
Corporate Social Responsibility, `Every successful corporation has a responsibility to use its
resources and influence to make a positive impact on the world and its people. Economically,
Environmentally and Socially Responsible, Beximco Pharma endeavors to, achieving success in
ways that respect ethical values, people in need, their communities and the environment.' The
Company's key strategies always aim to provide a strong return for shareholders, while creating
social and economic value in the communities where it operates.
CSR activities
Trusted Partner in Health : Beximco pharma work together with non-profit organizations who
work to improve people's lives through research, information, and advocacy. In the year under
review, we joined Mobile Alliance for Maternal Action (MAMA) in Bangladesh. MAMA is a countryowned, country-led initiative managed by an alliance of stakeholders. Through a core group of
founding partners The commercial brand name to be tested is Aponjon.
As part of the new United States Global Health Initiative, the United States Agency for International
Development (USAID) catalyzed the creation of a public-private coalition in Bangladesh to support
the execution of the service.
The Ministry of Health and Family Welfare (MoHFW) and Access to Information (A2I) Program at
Prime Minister's Office are official partners of the initiative. Global partners include Johnson &
Johnson and United Nations Foundation, among others.
31
Awareness Campaigns : Every year, we launch campaigns touching on different forms of heath
impediments ranging from asthma, diabetes, hypertension and many more. Campaign activities
include rallies in addition to organizing and sponsoring scientific seminars and conferences for
various associations and societies in medical disciplines.
Preserving Cultural Heritage : In 2011, we sponsored and organized the grand cultural event, at
the National Museum, marking the 150th birth anniversary of Rabindranath Tagore; It was
premiered on 7th May at the National Museum, Dhaka. We also sponsored the making and
distribution of the document.
Children's Education is a Right, not a Privilege : Beximco Pharma, offer financial assistance to the
children, of their employees, In the year 2011, Beximco Pharma offered assistance to a total of 36
meritorious students coming from diverse academic backgrounds.
Responsibility to the Environment : We are always aware of environmental compliance and
adopt policy to preserve the environment by practically minimizing emission and waste, thereby
reducing our carbon footprint. The premise that drives us is we always put the needs of people
before anything else in every chapter of our success story. Our Safety, Health and Environment
(SHE) program is also based on a framework of consistent standards.
Last year Company's turnover and budget for CSR activity : The Beximco pharma's approximate
yearly turnover BDT 7890.241843 million (December 2011) and Generally, Beximco pharma does
not disclose the budget for CSR activity.
Major Contribution in CSR : Health and Sports.
6. Grameenphone Limited
Company profile : Grameenphone is the largest mobile telecommunications operator in
Bangladesh. The company was incorporated on October 10, 1996 as a private limited company.
Grameenphone converted to a public limited company on June 25, 2007. Telenor Mobile
Communications AS (55.80%) and Grameen Telecom (34.20%). The rest 10.00% shareholding
includes General public & other Institutions. The company's Authorized Capital : BDT
40,000,000,000(Annual Report) and Fully Paid-up Capital : BDT 13,503,000,220 (Annual Report 2011). Yearly turnover approximately: 89,060,000,000 BDT(Annual Report -2011). Total employees
4,598 (December 2011) Male : 3968 and Female : 962.
CSR activities
In 2011, Grameenphone initiated the following initiatives:
National Immunization Day (NID): Jointly with the Government of Bangladesh, WHO & UNICEF,
Grameenphone initiated mass awareness campaign through SMS alert and other media on
polio eradication since 2007. In 2011, as part of this campaign, Grameenphone sent free SMSs
to it's subscribers, created awareness through all FM radio channels and published press ads in
leading dailies. Besides this, GP arranged mobile vaccination centers on the mini-trucks that
plied different important places across Dhaka City Corporation, which provided polio vaccines
to the children who are below five years.
Mobile for Health (M4H): Grameenphone jointly with USAID launched 'Mobile Alliance for
Maternal Action' initiative that provides critical life saving information to new and pregnant
mothers and their guardians through SMS and IVR. The project aims to reach 500,000 mothers
by 2015.
32
It's Our Turn: It's our turn is a platform to engage youths in voluntarily community works for
the betterment of the society. Through this initiative, Grameenphone engaged its employees
in the community works.
Online Classroom: Grameenphone, in partnership with Jaago Foundation, launched Online
Classroom Pilot Phase. Under the initiative, a suburban classroom is connected online with a
classroom in Dhaka while both the classes are conducted by a single instructor
simultaneously. To operate the classes, Video Conference technology is used and both teacher
and students interact in real time at the respective classes. Corporate Responsibility at
Grameenphone.
Helpline Support for Women Support & investigation division (WSID) and National legal Aid
Services Organization (NLASO): Grameenphone provided support to establish hotline for
'Women Support and Investigation Division of Dhaka Metropolitan Police and National Legal
Aid Services Organization (NLASO)' under Ministry of Law. It is expected that these services will
contribute significantly to reduce domestic violence and other crimes targeted to women and
children. At the same time, this will open doors to access legal support for the poor.
Blanket and Clothes Distribution: Distributed more than 7,500 blankets in different areas of
Dinajpur, Nilphamari, Gaibandha, Lalmonirhat, Chapainawabganj and Khulna. Besides, 5,015
pcs of clothes that were donated by GP employees were also distributed among the cold
affected poor community.
Special Olympics World Summer Games, ATHENS 2011: Grameenphone sponsored Special
Olympic Bangladesh Team to participate at the World Summer Games in 2011, held in Athens.
40 athletes [boys 28 and girls 12] participated and won a total of 60 medals among which 37
were gold medals.
Climate Change Program : As a responsible business, GP launched its 'Climate Change
Program' back in 2008 to gain sustainability and as well as to help people and community. GP
has an environmental Road map which aims to promote a low-carbon society, and GP's first
priority is to take responsibility for the excess CO2 emissions generated by its own operations.
GP has set a target of reducing 40% carbon emission (CO2) within 2015 from the business as
usual situation considering 2008 as the baseline.
Renewable Energy : We initiated renewable energy project back in 2007 to operate our offgrid sites with green energy in a business viable mode. At present we have 50 BTS sites
running on solar. Work is in progress for installing solar in another 110 sites. Deployment of 50
Solar BTSs from 2007 to 2011 saved approximately 598 Thousand Litres of fuel which measures
to over 1.5 Thousand Tons of CO2 reduction.
Consolidation & Optimization GP took two projects, one is network modernization project
which is to reduce its Network energy consumption by swapping of 7,272 BTSs with energy
efficient modern equipment and another is to consolidate and optimize Core nodes from 40 to
20 along with to reduce locations from 22 to 9 throughout the country with an aim to reduce
energy consumption and increase work efficiency. With these two initiatives, GP has saved till
now approximately 48 GWh (Gigawatt hours) electricity and 83 thousand liters of fuel which is
over 27 thousand tons of CO2 reduction. 50% energy consumption reduction in network sites
has been possible from network modernization project.
Community Power Project: Grameenphone partnered with University of Oslo to develop an
advanced Community Power Project. GP piloted this project in a remote village named
Paharpur, under Hobigonj district in Sylhet Division, at the northeast of Bangladesh. A minigrid has been developed and around 136 households are connected to this grid and getting
power from 5 pm till midnight. The ultimate goal of the initiative is to develop business models
that would promote a self-sustaining community power infrastructure. This also enables the
roll-out of Community Information Center (CIC) in areas that would otherwise be inaccessible.
Tele Dermatology Project: This is our pilot project. We include four village in this project.
Patients can get prescription from renowned dermatologist's through video conferencing. It
starts from 2012.
33
Safe Motherhood & Infant Care Project, Employment opportunity to acid survivors, Scholarship for underprivileged
meritorious students, Emergency relief effort in natural calamities of Grameen Phone
7. Singer Bangladesh
Company profile : After the emergence of Bangladesh on December 16, 1971, the East Pakistan
Branch Office was elevated to a country Office and the Sewing Machines were made available from
different Singer overseas sources. The number of shops was squeezed to only 23 because of low
volume of business. A change in the investment policy in 1979 created new business opportunities
and SINGER registered as an operating company, with 80% of the share held by SINGER Sewing
Machine Company (SSMC), USA, and 20% by local shareholders. In 1983 the company was listed
with Dhaka Stock Exchange (DSE) and offered 20% of its total capitalization- 2,565 ordinary shares
of Taka 100 each. In 2001, it was also listed with the Chittagong Stock Exchange (CSE).
SINGER's registered address is 39 DILKUSA C/A DHAKA-1000. Singer employ 926 employees, 794 of
them are male and 132 are female. It's registered/paid-up capital 392.68.000 BDT (2011, Annual
Report).
34
CSR definition : Mr.Mohammad Sanaullah, Director, Corporate Affairs & Company Secretary of
Singer Bangladesh ltd. He defined CSR that ,`Corporate Social Responsibility is one of the new
dimensions in corporate management. How, once there was a time in financial Management most
of the time people were telling that maximization of profit is the main objective of the company
but in modern concept we do not tell like that, we feel that the companies corporate
management's main objective is to achieve the corporate goal and incentives as well . Whenever
you have to achieve the corporate goal simultaneously you think about the stakeholder's interest
and at the same time to the corporate social responsibility also. Corporate Social Responsibility we
feel that those who are the progressive companies definitely they will look after the under
privileged people, the distressed people and who don't have the capacity to survive in this society'.
CSR activities : Singer, as part of its social commitment, has been extending its support to a
number of social projects in different forms. Singer also contributes to the promotion of sports and
culture in Bangladesh. The donation of Singer products to various institutions works for the
betterment of the under privileged people, which Singer views as its corporate responsibility.
In addition to this, Singer has been donating its products to organizations that are engaged in
social welfare activities.
Singer Sewing Academy : Sewing Academy is an embodiment of Singer's social commitment and
it resolved to bring the company closer to the people and community. The Academy extends its
services to the underprivileged women of the society for income generation. On an average each
year, the Sewing Instructors provide training to approximately 2000 students.
ILO Child Labor Elimination Program : In 2000 the European Union and the United States of
America took a strong stance to stop child labor (age below 14 years) in the garments industry.
Consequently, a huge number of children were laid off in many countries, including Bangladesh.
These children were school dropouts and found employment in garments industries to support
their families. ILO decided to go for sewing, cutting and embroidery training. Reflecting the spirit of
social commitment, Singer joined hands with ILO for improving the sewing skills of the displaced
under-aged garment workers so that they could develop their necessary expertise in this area.
SINGER-Channel i Bravery Award : Kingbodonti 2012 at Celebrity Hall of Bangbabandhu International Conference
Center on 14 November, 2012
35
36
Summit donate Ashokti Punorbashon Nibash (APON), which has brought light back to hundreds of men and women whose lives
have been darkened by drug abuse. Under the Corporate Social Responsibility (CSR) initiative of Summit Group, Friendship has
started implementing the project to provide the char people of Gaibandha access to solar electricity.
SEID Trust
SEID Trust is a non-governmental voluntary development organization working for social inclusion
and promoting rights of underprivileged children with disabilities including intellectual and
multiple disabilities as well as autism since 2003.To maintain the continuation of such
philanthropic project , this year our Company sponsored an amount of Tk. 13,43,750/- to support
this deprived part of the community.
37
38
Religious allowance
Health benefits : The employees of the company are given health allowance as per
government rules. Free health services are provided to the employees and their
dependents in 15 selected Hospitals.
Employee Welfare : The company undertakes various motivational activities to improve human
values, mutual understanding, interpersonal relationship and loyalty among the officers and
employees. In the year 2011-12 the company arranged the following social, cultural, religious and
entertainment programmes on regular basis:
Education : Employee's dependants who come out successful at secondary, higher secondary,
graduation and postgraduation level are granted scholarships under "Titas Gas Education
Scholarship & Financial Assistance Programme". Under this programme a total of 252 students
received scholarships at different levels within the year under review. In 1987, "Titas Gas Adarsha
Uchcha Biddyaloya" was established at the premises of Titas Gas Office at Demra.
Loan : In line with government policy for promotion of information technology, loans are granted
for the welfare of the employees as per budget allocation for land purchase, house building,
motorcycle purchase in the tune of Tk. 48.84 crore and also for computer purchase in the tune of
Tk. 6.60 lacs during FY 2011-12.
39
The company handing over a cheque of Tk. 10 Lacs as donation to Professor Dr. Anisuzzaman for Liberation War
Museum Construction Fund as a part of Corporate Social Responsibility (CSR) Programme of the Company.
Religious Programme : As in the previous year, Milad Mehfil was also arranged on the occasion of
'Eid-E-Mildunnabi' at Demra Residential Complex Mosque during the year under review. Apart from
this, funeral assistance amounting to Tk. 10,000.00 per family was granted to the families of 19
employees who expired while in service of the Company in 2011-12, the total amount donated was
Tk.1.90 lac only.
Entertainment and Sports : Tiats Club regularly takes part in the Premier Volley Ball League of
Bangladesh Volley Ball Federation. Titas club won Championship title twice and Runner-up title for
4 times.
Health, Environment and Safety : Natural gas is an environment friendly energy. It has been
playing an important role in the economic development of the country. Safe use of natural gas is of
paramount importance. For this reason, safety of different stations and environmental activities
including the safety of gas pipelines and stations, health and safety of the people who are engaged
in system operation and maintenance are given due importance. The following actions are
undertaken in respect of health, environment and safety:
Health : The employees of the company are given health allowance as per Government rule. The
physicians of the company provide health services to the employees and their dependants. At the
cost of the company, the employees and their dependants are given outdoor treatments and
emergency health care at BSMMU under a contract between the company and BSMMU. Medical
services are also being provided in 15 selected hospitals.
Environment : To preserve the environmental balance, a large no. of trees were planted at different
installations of the company under "Tree Plantation Programme" during the year under review.
40
Prof. Dr. Md. Hussain Monsur, Chairman, Petrobangla and Md. Abdul Aziz Khan, Managing Director
of the company handing over a cheque of Tk. 10 Lacs as donation to Professor Dr. Anisuzzaman for
Liberation War Museum Construction Fund as a part of Corporate Social Responsibility (CSR)
Programme of the Company.
Last year Company's turnover and budget for CSR activity : It's approximate yearly turnover
BDT : 68551233852 BDT(2010-11) and As a part of Corporate Social Responsibility Programme of
the Company Tk. 3.00 lac was donated to the family of a deceased employee who was appointed
by outsourcing, Tk. 0.65 lac was donated to Dutta High scholl, Netrokona, for purchasing projector
and Tk 10.00 lac was donated to Muktjuddho Jadughar, Dhaka.
Labour act comply : Company completely follows the labour act, even though they didn't practice
fire drill once a year.
41
Nestl supports initiatives to create awareness about the right to education and encourages the
communities around its factories to send their children to school. That is why the company already
builds up several schools for the workers' children of the factory. Moreover Nestl Bangladesh from
2009 started to distribute laptops among the school going children to make chance for the
students to get modern education, already 49 schools have been covered under this initiative. On
the other hand Nestl India employees have developed a special play 'Let Us Go to School' for this
purpose. This has been staged amongst the communities around the factories, and its recordings
screened at smaller gatherings even in Bangladesh. "Much of our CSR initiatives in the country
centers around proper sanitation and access to clean drinking water, two areas which could be
identified as the quite essential prerequisites for leading a healthy life" Giving access to computer
technology- a basic educational requirement of these days, to rural school students is another area
on which Nestle CSR initiatives are based on.
In line with that, the company has also donated computers to a total of 49 schools in rural areas for
use in the school laboratories, the authority said."The nature of our CSR activities is such that the
initiated projects go through extensive subsequent monitoring on our behalf and things such as
proper maintenance are assured"
Labour act comply : Nestl is providing enough space to its employees to take an active part in
the life of the community or by assuming responsibilities in professional, civic, cultural, religious or
voluntary organizations. Nestl believes that any activity during working hours has to be first
approved by the company. Nestl Bangladesh maintain a stable compensation structure in
compare to the other corporate of Bangladesh. Compensation in the different levels of the
employment always remains equal to or above the market benchmark. Compensation practice
takes relevant external compensation levels as well as the requirement of internal fairness.
42
Medical Service where workers of the group along with the people of that area receive
necessary health care at a subsidized price in Babylon Medical Center at Hamayetpur,
Savar.
Babylon, strives to provide world class service and the best value to their customers. They
thrive for excellence and work for ensuring a pleasant, clean and professional working
condition for our employees and the people we do business with.
Specialist Health Camp on June 07, 2012" We ware pleased to let you know that Babylon
Medical Services (A sister concern of Babylon Group) organized a Free health camp on
June 07, 2012 from 9am-5pm.
Babylon Scholarship Distribution Ceremony 2012" Babylon Shikkha Britti Prokalpa
(scholarship project) is a part of its CSR (corporate social responsibility) activities. Babylon
Group celebrated its Scholarship Distribution Ceremony 2012 on 20th October 2012. This
year Babylon offered scholarship to 51 talented but under privileged students of the
country.
Visitors from Embassy of the Kingdom of the Netherlands Dhaka Office Visited the CSR
activities of Babylon Group on 2nd March 2012. First secretary, SRHR, Education and
Gender, Embassy of the Kingdom of the Netherlands, Ms. Ella de Voogd recently visited
Softy a CSR (Corporate Social Culture) project of Babylon Group. On 2nd March 2012, Ms.
Ella along with the Advisor SRHR and Gender, Kingdom of the Netherlands Ms. Mushfiqua
Z. Sattar and Technical Officer Maternal Health, WHO, Dr. Jyoti Reddy visited Softy, a project
43
The CSR activities of Babylon Group have been the reflection of its social commitments. The group has been active
to ensure a better living for its employees as well as the community. Babylon Group patronizes underprivileged yet
talented students of the country in order to offer them equal opportunity of a bright future. The Group managed to
reach out to a number of those champion performers in hardship and offered scholarships to them for higher
education.The initiatives of Babylon in this regard has been awarded and accredited by the Ministry of Labor,
Government of Bangladesh, BGMEA and BKMEA.
of producing low cost Sanitary Napkin by Babylon Group and took a tour of some of the
factories of the Group. They watched different projects on CSR of it and met workers,
management staff and Directors of the Group. Babylon Director Mr. Emdadul Islam and Mr.
Abidur Rahman, General Manager Admin Mr. Mohammad Hasan and Public Relation
Manager Mr. Shamimul Islam accompanied them.
Babylon Group distributed warm cloth among cold affected people at ShamNogor (Aaila
affected area) under Shatkhira District.
Last year Company's turnover and budget for CSR activity : Last year Companies Yearly
turnover approximately: BDT 131,000, 000 and budget for CSR activities was not mentioned.
44
CSR activity : Actually we do not practice CSR separately. But as a group we donate a lot when it
needed. We did it in two ways, one is organized way. We are a sister concern of a nonprofit
organization that is Kaji Foundation (KSF), all our group entity funded in KSF. Another way of
contribution is adhoc bases. But it is a show of culture that if a company contributes something for
social development they eagerly waited for publicity, but our company never thinks like that.
Poverty alleviation through cattle rearing & social projects. Via our cooperative we encourage
villagers to rear organic cattle. Our interest-free loans, in the form of cows, are paid back in longterm installments through the selling of milk, cow dung and calves. In this way, local farmers can
rapidly become self-reliant and self- sufficient entrepreneurs.
This cooperative is supported in Bangladesh by the KK Tea brand, and abroad by the Teatulia brand
of teas. We support and encourage young boys and girls in outdoor sports. Sports equipment such
as footballs, volleyballs, cricket bats, and carram boards are distributed free of cost to primary and
secondary schools, and local clubs at our farm. Hygienic latrines are a basic prerequisite for
sanitation. So from the very beginning of our tea plantation we have distributed safe latrines
amongst our workers and poor villagers around our area.
These latrines are distributed free of cost and all technical support is provided by our experienced
personnel. Latrine distribution has been one of the most successful ways to quickly and simply
improve the health conditions of the area.
45
Company Name
Responsible
Person
Designation
Company Address
Contact Number
1.
Apex Tennary
Jagadis Kumar
Bhanja
Company
Secretary
880-2-8622097
2.
Md. Moinul
Ahasan
House # 6, Road #
Group Head of
Human Resources 137, Block SE(D),
Gulshan-1, Dhaka1212, Bangladesh
3.
Zeeshan
Kingshuk Huq
1 Gulshan Avenue,
Head of
Communication & Gulshan 1, Dhaka
1212 , Bangladesh
Service Quality
4.
Beximco Pharma
Fairuze
Chowdhury
Executive,
Business
Development
5.
Mohammad
Hasan
General Manager
2-b/1, Darussalam
880-2-9023495
Road, Mirpur, Dhaka1216, Bangladesh
6.
Grameenphone Ltd.
Debashis Roy
Head of Corporate
Responsibility
Communication
Divission
GP House
Basundhara,
Baridhara, Dhaka1209,Bangladesh
880-2-9882970
7.
880-2-8834990
8.
Gulsan Tower(4th
Floor), Plot no.31,
Road No,53 , Gulsan
North C/A, Dhaka1212, Bangladesh
880-2-9882759
9.
10.
Mr. Mahamud
Hasan
11.
46
880-2-8820300
880-2-8619151-5
Director,
39 DILKUSA C/A
880-2-08813415
Corporate Affair & DHAKA-1000,
Company
Bangladesh
Secretary
18 Kawran Bazar C/A, 880-2-9137485-6
Company
Dhaka -1215,
Secretary
Bangladesh
Deputy General
Manager
Male
Female
47
16. Do you have a plan to reduce or increase the number of CSR activities that you undertake? If so
why and how? If not, why not?
17. Do you involve any of your suppliers or buyers in your CSR activities? If so, how?
18. How does the company decide to undertake particular CSR activities and not others? Is it ad
hoc, or planned? Annual basis? At board level? Is there a theme?
19. Do you have a separate department or unit involved in CSR activities? If so, please explain how
it works, who is involved in it etc? Is this the only think the unit does?
20. If there is no specific unit, who is involved in organizing and implementing CSR activities?
21. Do you obtain any advice from any other organisations about CSR activities?
22. Have you faced any type of impediment or hurdles in implementing CSR activities in your
business? Yes
No
If yes, please explain briefly.
48
Female:
Employment Standards
1. How many years you have been working here?
2. Did you receive any appointment letter?
Yes No
Yes No
Yes No.
If yes, except overtime how many hours you have to work a day?
6. Have any overtime?
Yes No.
Yes No
Yes No
Yes No
Yes No
49
Yes No
Yes No
Occasionally
Compensation
20. Does your company pay compensation if any accident happens?
Labour Relations
21. Is there any trade union?
Yes No
If no, why?
22. Is there any participation committee (according to section 205 of labour act)? Yes No
23. Did any worker file any case before Labour Court to realize his/her benefit? Yes No
If yes, in which labour (1, 2, or 3) court and for what?
24. Did the company establish any contributory and welfare fund?
If yes, did anyone get benefit from that fund?
Yes No
Yes No
50
51
NPOLYMAR (National Polymer) : Mr. Riad Mahmud ( Managing Director) Rubaiyat House, House #
15, Level # 1, Road # 24, Gulshan-2, Dhaka-1212
RANFOUNDRY (Rangpur Foundry) : Mahtabuddin Ahmed, Managing Director PRAN-RFL Centre,
105/1 Ga, Middle Badda, Dhaka-1212, Bangladesh (8802) 9881792 ,Fax: 88 - 02 - 8837464 ,E-mail:
[email protected],Web Address:http://www.rangpurfoundry.com
SINGER BANGLADESH LIMITED : M. Hamim Rahmatullah Chief Executive Officer, 39, SINGER
BANGLADESH LIMITED Dilkusha Commercial Area Dhaka 1000, Bangladesh ,Corporate Office:
House: 5B, Road No: 126, Gulshan-1, Dhaka-1219. Contact Phone: (8802) 9564438, 8813415, 825864
Fax:
88 - 02 - 9564431, 8858 247E-mail: [email protected] Address:
http://www.singer.bd.com
4. List of Companies : Pharmaceuticals & Chemicals=5
Beximco Pharmaceuticals : Mr. Nazmul Hassan ,Managing Director, Director Beximco
Pharmaceuticals 19 Dhanmondi R/A ,Road No. 7 Dhaka 1205 Bangladesh. Telephone: +880-2-8619
151 (5 lines) Fax: +880-2-8613 888 and +880-2-9663 579
ACTIVEFINE (Active Fine Chemicals Limited) : S.M. Saifur Rahman. Managing. Director.
ACTIVEFINE( Active Fine Chemicals Limited ) Active Fine Chemicals Limited, Tanaka Tower ( 2nd
Floor), 42/1/Gha, Segun Bagicha, Dhaka-1000.
LIBRAINFU (Libra Infusions Limited) : Ayesha Alam, Managing director I/7, Mirpur Industrial
Estate, Rupnagar Section-2, Dhaka-1216, Bangladesh. 9001179, 9004770-1, 8012534, 8012536 Fax
(880-2) 8015833 ,Web Site www.libragroupbd.com, Email address [email protected]
ORIONINFU (Orion Infusion Ltd.) : Mr. Mohammad Obaidul Karim Managing Director Orion
House, 153-154 Tejgaon I/A, Dhaka-1208, Bangladesh Tel: +88.02.8870133, 8870134 ,Fax:
+88.02.8870108
RECKITTBEN (Reckitt Benckiser(Bd.)Ltd.) : Rakesh Kapoor CEO, Plot 2(B) Block SE(C) Rd. 138,
Gulsham-1 , Dhaka, 1212 , Bangladesh, 880 02 988 7209 Fax: 880 02 988 7354
5. List of Companies : Services & Real Estate: 4
OCL (Ocean Containers Limited) : Syed Ali Jowher Rizvi ,Deputy Managing Director. Summit
Centre 7th Floor Dhaka, -- 1215 ,Bangladesh Phone: 880 2 913 0845 Fax: 880 2 913 0853
EHL (Eastern Housing) : Dhiraj Malakar, Managing Director ,Eastern Housing Ltd 125/A Motijheel
C/A, Dhaka, 1000, Bangladesh Phone: 880-2-9566303 , Fax: 880-2-9566311
www.easternhousing.com
SAMORITA (Samorita Hospital) : Dr. A. B. M. Haroon, Managing Director, Address: 89/1,
Panthapath, Dhaka - 1215, Contact Phone: (8802) 9131901, Fax: 88 - 02 - 9129971,samorita@
bangla.net, Web Address: http://samoritahospital.net
SAPORTL (Summit Alliance Port Limited) : Syed Ali Jowher Rizvi, Managing Director .SAPORTL
Summit Centre, 18 Kawran Bazar C/A, Dhaka-1215 Contact Phone: 88-02-9130845-54 , Fax: 88-028189235 E-mail: [email protected], http://www.saplbd.com
52
53
CSRB
CSR Bangladesh
SRB
SRS
CPD
CR
Corporate Responsibility
NGO
Non-Government Organization
BEI
BEF
BGMEA
BKMEA
UCEP
BASF
SME
SEID Trust : SEID Trust is a voluntary non-government organization that works for the rights and
social inclusion of underprivileged children with physical and mental disabilities, including autism.
CSR Bangladesh (CSRB) : CSR Bangladesh was established in 2008 to facilitate, expand and
encourage CSR practice in Bangladesh. The CSRB is a nonprofit organization and its objective is to
become the source of information, resources and advisory services on CSR in Bangladesh.
http://www.csrbangladesh.org/index.php
CSR related Certifications in Bangladesh : There are a number of private consultants and NGOs
offering advice on certifications related to CSR for example: SA8000, ISO26000, GRI ma.
54